Why Word-of-Mouth Marketing Should Be Important to your Insurance Agency

Written by Gracie Kimble

February 27, 2019

Why Word-of-Mouth Marketing Should Be Important to your Insurance Agency

When you go to buy a product, do you look at the reviews? Chances are, you do. For many clients, reviews from others who have purchased the product they’re eyeing can be the determining factor for whether or not they purchase it. Reviews or talk of products and services will create a reputation for your insurance agency. The way customers talk to others about your agency is better known as word-of-mouth marketing. Below, we will discuss a few ways word-of-mouth marketing can grow your insurance agency.

In order to grow your insurance agency with word-of-mouth marketing, you have to be able to identify the ways in which individual insurance agents and insurance agencies differentiate.

Individual insurance agents want to do everything in their power to please their clients. That may mean finding the best plan for them, giving them useful advice when it comes to purchasing insurance or even guiding them through the basics of Medicare.

Agencies, on the other hand, must focus on the products they sell. Customers and prospects want products that are valuable, but also budget-friendly, so it’s important for insurance agencies to find products that can cater to multiple aspects. Working with an FMO, such as Agent Pipeline,  can make this process a lot easier. FMOs can help make the contracting processes much faster and help agencies find the products that are the best for them and their customers.

Take a second to think about yourself as an agent. Do you do everything you can to help your clients and prospects? Are you genuine? Do you have their best interest? Being personable and understanding will help you to build trust and rapport with your clients. If you help them effectively, they are very likely to recommend you to friends and family or give you a good review.

What about agencies? Well, it all depends on what the customers say. If your agency offers quality products and services consistently, it is more likely that customers will recommend you to friends and family.

A specific customer that plays a large role in word-of-mouth marketing are people that utilize Dual Special Needs Plans (DSNPs). These customers generally have a lower-income and are the elderly. Most of them don’t use social media or email, so the way they hear about products or services is mostly through telephone calls, advertising, and word-of-mouth. They also give reviews of products and services via word-of-mouth because of their little use of newer technology.

Word-of-mouth marketing can happen everywhere. Facebook, Yelp, website comments, or even a walk in the park. Facebook is a great place to see what your customers are saying about you or your agency. If you have a page, it’s likely you have reviews enabled. When people review your website or page positively, that can help draw other customers in because they can assume your products and services are worthwhile.

Word-of-mouth marketing gives you the opportunity to build relationships with your customers. On these review platforms like Facebook and Yelp, businesses can respond in real-time to their customers, which helps to create a sense of authenticity. Customers value this sort of engagement because it gives them the reassurance that if anything were to go wrong, you would be there to help.

Word-of-mouth marketing may seem fairly simple, but it does take a lot of time and planning. It requires some strategy, and it may be a good idea to have a team that can be dedicated to it. Having employees that can offer quality help and assurance will be very helpful in your word-of-mouth marketing efforts. Increasing the number of customers that love and enjoy your insurance products or agency will undoubtedly result in the growth.

For assistance with your marketing efforts, give us a call at 800-962-4693 to speak with a member of our Marketing Team.

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